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The containerized and modular data center market size is projected to increase by USD 54.8 billion with growth at a CAGR of 18.5% between between 2023 and 2028. The containerized and modular data center market is experiencing significant growth due to several key factors. Firstly, the increasing demand for rapid data center deployment is driving market expansion. These containerized and modular solutions offer a streamlined approach to traditional data center complexities, enabling faster implementation and scalability. Additionally, containerized data centers provide an ideal solution for disaster recovery, minimizing downtime and ensuring data restoration, making them a valuable asset for businesses seeking uninterrupted access to critical data. The flexibility, efficiency, and cost-effectiveness of these data center solutions continue to fuel market growth.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about key companies, including ABB Ltd., Alphabet Inc., Bladeroom Group Ltd., Cannon Technologies Ltd., Cisco Systems Inc., Datapod, Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Etix Everywhere France SAS, FURUKAWA Co. Ltd., GREEN4T SOLUCOES TI LTDA, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., IE Corp., International Business Machines Corp., Langley Holdings Plc, Rittal GmbH and Co. KG, Schneider Electric SE, and Vertiv Holdings Co.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cannon Technologies Ltd.: The company offers Cannon Data Campus, and Data Campus-Pods. Also, the company manufactures and supplies racks, cabinets, and data center solutions.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the IT and Telecommunication segment will be significant during the forecast period. An increase in the adoption of containerized and modular data centers in the IT industry is expected to continue as technology evolves and new applications and services emerge that require increasingly powerful computing resources, which, in turn, will boost the growth of the global market during the forecast period.
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The IT and telecommunication segment was valued at USD 5.8 billion in 2018. Data centers are critical components for the IT and telecom industry, providing the necessary computing power and storage for various applications and services. Cloud computing has become a common way for businesses to access computing resources such as central processing units (CPUs), computer memory, file storage, and input/output (I/O) devices without investing in expensive hardware and infrastructure. As more businesses adopt cloud computing, the demand for data centers to support these services has increased. The explosion of data generated by businesses and individuals has created a need for containerized and modular data centers capable of processing and storing large amounts of data. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The increasing adoption of cloud services by enterprises across industries in the US and Canada is one of the major driving factors for the growth of the market in focus in the region. Enterprises are opting for cloud solutions to reduce the operating and CAPEX incurred by on-premises data centers. Enterprises are increasingly adopting cloud solutions from hyperscale providers such as AWS, Microsoft, and Oracle to meet the computing capacity requirements with minimum expenditure.
As of 2021, the US has the largest number of data centers in the world, with the number pegged at 2670. Furthermore, the region has several data centers already established by various enterprises. For instance, Apple Inc. (Apple) has a total of 11 data centers, of which six are in this region.
The market is rapidly expanding amidst increasing demands in the data center industry for scalable data center infrastructure solutions. These modular units, such as pre-fabricated modules, integrate efficient power and cooling systems, firefighting systems, and cabling, supported by advanced management systems for seamless operation. Organizations benefit from deploying pre fabricated data center solutions, reducing capital and operating costs compared to traditional physical data centers. As investments in data center assets and infrastructure grow, providers focus on accommodating diverse sectors including Internet of Things (IoT), media and entertainment, and energy and utilities through scalable edge computing capabilities. The rise of OTT platforms, multi tenant data centers, and hyper scale data centers further drives market growth, facilitated by advancements in 5G networks, FinTech, and EduTech applications. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market is the rapid deployment of data centers. With fast-changing business requirements, there is an increased need among organizations to deploy fresh data centers as well as add additional data center capabilities in a much shorter time. The traditional data center deployment approach requires a huge amount of time for designing and building. The normal data center deployment requires around eighteen to twenty-four months to become fully operational. Since modular data centers are preassembled with standardized components such as racks and IT infrastructure, the deployment of the data center through a modular model can be done within six months.
In addition, most traditional data centers are experiencing an increased need to equip additional IT infrastructure, where the need for space and adequate cooling is not possible. In these cases, organizations are involved in adopting modular structures that can be rapidly deployed at low CAPEX, which will avoid the need for constructing additional data center facilities. Hence, the need for faster data center deployment for many organizations can be met by the adoption of modular data centers. Such factors will increase the market growth during the forecast period.
The implementation of a software-defined modular data center is another factor supporting the market growth in the forecast period. A software-defined modular data center refers to a data center where infrastructure is delivered as a service through virtualization of the physical infrastructure, i.e., hardware infrastructure is managed through intelligent software systems. A software-defined data center (SDDC) supports both legacy applications and cloud computing services and improves efficiency, lowers costs, provides applications in minutes, offers higher availability and better security, and creates an opportunity for the delivery of workloads through the cloud. It comprises three components: SDN, SDC, and software-defined storage (SDS).
Enterprises adopting cloud-based infrastructure will consider the possibility of establishing SDDC to achieve better control over business-critical operations and enhance the management of their data center facilities. This also includes the implementation of SDC, SDN, and SDS. Vendors in the modular data center market, such as IO (Baselayer), are also involved in the implementation of SDDC for modular data center environments. In addition, popular SDDC vendors such as HPE, Huawei, and IBM are involved in the implementation of SDDC to support the centralized management of modular data center infrastructures such as servers, networks, and storage.
Lack of awareness and expertise will be a major challenge for the market during the forecast period. Data center operators are not skilled in operating modular and containerized data center solutions in terms of configuration. Furthermore, an improper understanding of the specifics of the facility will have an adverse impact on productivity. Moreover, any data center operator, before adopting these solutions, should have fundamental knowledge in terms of designs and operations. Expertise is required in building and operating critical infrastructures such as modular data centers, irrespective of the personnel from the vendor side or a data center operator.
This is to ensure successful design, deployment, effectiveness, and robust operations. After being adopted (data center) by data center operators, successful operations of the modular facility will require appropriate education and training on the working principle of the machinery. In addition, it is also important to gain expertise in the service and maintenance procedures of the data center. Safety is a key criterion in the operation of data center facilities, as any compromise will increase the OPEX of the facility. Such factors will hinder the market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is evolving rapidly with the adoption of pre fabricated modules and prefabricated data centers, offering flexible solutions for investment in data centers and accommodating data center asset across various sectors. As traditional physical data centers face constraints in available space, containerized solutions cater to diverse needs in mobile internet, big data, and artificial intelligence. They support digital service industries and enhance data center design for cloud providers handling AI workloads and colocation services. With a focus on energy efficiency and reducing carbon footprint, containerized data centers promote sustainability and offer value-added services including continuous monitoring and robust physical security layers. They serve enterprises of all sizes, including SMEs and large enterprises, in sectors like healthcare, government, gaming, healthtech, and retail, ensuring efficient operations across IT and telecommunications and aerospace and defense industries.
Industry Scope |
|
Report Coverage |
Details |
Page number |
192 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.5% |
Market growth 2024-2028 |
USD 54.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.12 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, UK, China, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Alphabet Inc., Bladeroom Group Ltd., Cannon Technologies Ltd., Cisco Systems Inc., Datapod, Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Etix Everywhere France SAS, FURUKAWA Co. Ltd., GREEN4T SOLUCOES TI LTDA, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., IE Corp., International Business Machines Corp., Langley Holdings Plc, Rittal GmbH and Co. KG, Schneider Electric SE, and Vertiv Holdings Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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